Education planning definitions

Saving for post-secondary education may seem complicated but it doesn’t have to be! This page will provide you with more information about the terms related to education planning. If you have questions or would like to discuss your investment options, contact DFS Investments.

Through the Canada Education Savings Grant (CESG), eligible contributions to a Registered Education Savings Plan can qualify for a grant from the government. The CESG is available to Canadian children under the age of 18 based on certain rules and restrictions.

The Canada Learning Bond (CLB) is designed to help families start saving for post-secondary education earlier. There are eligibility rules and restrictions which can be found on the Service Canada website.

Any withdrawal from a Registered Education Savings Plan that is not a post-secondary education withdrawal. Government grant money received on the contributions being withdrawn must be returned to the government at the time of the withdrawal.

When a student enrolls in a qualifying program, the subscriber can withdraw money from their Registered Education Savings Plan to help pay for their education. These withdrawals are called Educational Assistance Payments (EAP).

A Registered Education Savings Plan (RESP) is an account that is registered with the Canadian government that allows a person (subscriber) to save for a beneficiary's post-secondary education. Contributions grow tax-deferred and may qualify for a match from the government up to certain lifetime and annual limits.

Mutual Funds are not guaranteed, their values change frequently and past performance may not be repeated. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer.

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